Question: please help with these two questions The Agent Problem arises: A. Because of the separation of ownership and control in a corporation B. Because managers

The Agent Problem arises: A. Because of the separation of ownership and control in a corporation B. Because managers have little incentive to work in the interest of shareholders when this means working against their own interests O C. Both A and B OD. None of the above You work for a pharmaceutical company that has developed a new drug. The patent on the drug will last for 17 years. You expect that the drug's profits will be 4 million in its first year and that this amount will grow at a rate of 6% per year for the next 16 years. Once the patent expires, other pharmaceutical companies will be able to produce the same drug and competition will likely drive profits to zero. If the interest rate is 10% per year, the present value of the new drug is__million (Please write numbers only, no "$", no, no million", round to two decimal places. Lewrite $1.234,567 as 1.23)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
